The Intercept in the Regression Equations Calculated by Beta Books

question 73

Multiple Choice

The intercept in the regression equations calculated by beta books is equal to

• A) α in the CAPM.
• B) α + r_f(1 + β).
• C) α + r_f(1 − β).
• D) 1 − α.

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Definitions:

Attachment

The point at which a creditor becomes the secured party that has a security interest in the collateral.

Secured Party

A lender or creditor who has an interest, typically a lien, in the collateral offered by the debtor in a secured transaction.

Collateral

Assets that a borrower offers to a lender to secure a loan, which the lender may seize in the event of loan default.

Intangibles

Assets that lack physical form but have value, such as intellectual property or goodwill.